In a significant development in the ongoing opioid crisis litigation, Purdue Pharma and its owners, the Sackler family, have indicated that the family’s contribution to the settlement could exceed the previously announced $6.5 billion.
This increase is contingent on the future sales of the Sacklers’ non-U.S. companies, potentially raising the total payment to over $7 billion.
During a hearing before U.S. Bankruptcy Judge Sean Lane, Purdue’s attorney, Marshall Huebner, revealed that the Sacklers might pay an additional $500 million, depending on the success of divesting their international businesses.
This announcement comes as part of a broader settlement that aims to resolve thousands of lawsuits alleging Purdue’s OxyContin contributed to the widespread opioid addiction crisis in the United States.
The settlement, initially valued at $7.4 billion, includes a commitment from Purdue to pay $900 million. While parts of the bankruptcy plan remain confidential, Huebner noted that substantial progress is being made to finalize the agreement.
The deal also includes provisions for the Sacklers to share profits from future sales of their non-U.S. companies, such as Mundipharma, which operates outside the U.S.
A key aspect of the settlement is the allocation of funds for personal injury claims, with approximately $800 million set aside for this purpose. This represents an increase from the $700 million to $750 million allocated in previous plans.
Judge Lane expressed satisfaction with Purdue’s progress in sharing concrete details with creditors, who have been awaiting developments since the U.S. Supreme Court rejected a previous settlement. As a result, a litigation ceasefire protecting the Sacklers from lawsuits will continue until the end of March.
The revised deal does not entirely preclude future lawsuits against the Sacklers, who have stated their intention to vigorously defend themselves if necessary.
Read more: